HOME LOANS come in a variety of forms from loan terms of 15 all the way up to 45 years at fixed or variable rates. It is important to get the home loan that is right for you.
But, before shopping around for home loans it is very helpful to know in advance how much home you can afford, deciding on the type of loan can be done later in the home buying process. If you want home loans quotes see our simple application below this article.
Figuring out how much home you can afford is what is called a "pre-approval." As a part of the pre-approval, your lender will evaluate your finances, your credit history, and your investments in a series of calculations and determine the max you can borrow.
Pre-Approval on home loans is an advantage when dealing with home seller agents because it makes your interest in buying seem more serious. The seller can also be guaranteed that if they sell you the home you will be able to finance the home and the sale won't fall through come signing time. Additionally you will walk away from the pre-approval process with a much better idea of how much home you can truly afford to make monthly payments on.
Once you have found a home and been pre-approved by a lender, it is time to decide on what loan type best suites your needs. There are special loan types available for first time buyers, the elderly, and veterans. For example, as a part of FHA home loans, the borrower is able to make a smaller down payment in exchange for paying a small monthly PMI (private mortgage insurance) fee.
If your credit is less than perfect, adjustable rate mortgages are often easier home loans to acquire. You may very well pay more in interest with a variable rate mortgage, but down the road when your credit improves from making regular payments, you can refinance and lock in at a fixed rate of interest.
Getting home loans started
The best way to get pre-approved for a home loan and get started on the buying process is to contact as many lenders as time allows. At our site we offer a simple form that will put you in contact with multiple lenders to provide financing and answer your particular questions in detail. Apply today and get up to four competitive home loans rate quotes.
Common Home Loans Questions:
1. How can I figure out my monthly home loans payments?
Only a qualified mortgage professional can tell you exactly what your home loan monthly payments will be. However, we do offer a free home loan calculator that will estimate your monthly payments and provide an amortization table to show you your interest payments as well.2. I have a lot of debt, can I still get home loans?
When a lender evaluates your home buying power one thing they take into account is your debt to income ratio. Your ratio will be factored into how much money the lender is willing to offer you. If you have made regular payments on your debt your credit score will reflect this fact positively and help you in getting your loan. While there is no hard fast rule to determine whether or not you can get a loan, you can contact a lender for free using our online application.3. Are home loans still possible if you have bad credit?
Bad credit is commonplace and many of our lenders specialize in helping clients that have bad credit to get a home loan. Home loans for those with bad credit often carry a higher interest rate, but the loans can be refinanced at some point once credit has improved from regular payments on the loan. To find out if you can get a home loan fill out our free online application and you will be contacted within a day or two.